INTRODUCTION
At-a-Glance
- What’s new? The CMA Board has introduced a temporary fast-track that gives priority review to public-offering applications for sukuk and bond issuances that carry a credit rating from a CMA-licensed credit rating agency.
- How long? The incentive is effective immediately and will remain in force until 31 December 2026.
- Why? The measure is designed to deepen the Saudi debt-capital market, widen the investor base and advance the goals of Vision 2030 to diversify sources of finance and foster economic growth. It complements the CMA’s 2024-26 strategic plan, which already spotlights the development of the sukuk and debt instruments market.
KEY FEATURES
| Item |
Details |
Practical Impact |
| Eligibility |
- Issuers or individual issuances must have a credit rating from a credit rating agency licensed by the CMA.
- Applies to public offerings of debt instruments (sukuk or conventional).
|
Issuers or issuances without a credit rating may find their applications processed in normal turn; obtaining a rating secures the fast-track.
|
| Scope of Priority |
Expediting review procedures by the CMA, where priority will be given to files that meet the eligibility above.
|
Condensed review timeline can materially shorten “time-to-market”, critical for pricing windows and liability-management deals.
|
| Duration |
In effect until end of 2026.
|
Allows potential issuers to align funding calendars and lock in attractive pricing.
|
EXPECTED BENEFITS FOR MARKET PARTICIPANTS
- Sharper Marketing Edge – Sukuk and bond issuances that carry a credit rating are more attractive to institutional and qualified investors who rely on ratings in their mandates.
- Broader Investor Reach – Issuers and issuances with credit ratings help tap insurance, funds, and international inflows, and support order-book depth.
- Regulatory Clarity & Speed – A predictable, faster approval cycle reduces execution risk and may lower overall issuance cost.
- Market Development – More issuances with credit ratings should enhance price discovery and secondary-market liquidity, which is a key CMA objective.
CONSIDERATIONS FOR ISSUERS & INVESTMENT BANKS
| Action Point |
Why it Matters? |
| Early Rating Engagement |
Initiate the credit rating process 4–6 months before target launch. |
| Prospectus Alignment |
Ensure credit rating rationale, covenant package and risk factors are reflected consistently. |
| Investor Education |
Use the credit rating to widen outreach – particularly to international QFIs – highlighting governance, ESG credentials, and covenant protections. |
| Cost–Benefit Analysis |
Credit ratings carry initial and annual fees; weigh these against the value of speed-to-market, broader demand and potentially lower coupons. |
How We Can Help
Our Capital Markets and Banking & Finance teams routinely advises corporate, sovereign, quasi-sovereign, and financial-institution clients on Saudi and cross-border debt issuances.
For a deeper discussion on how this incentive may accelerate your next sukuk or bond offering, please reach out to our Tier 1 Capital Markets and Banking & Finance teams.
Disclaimer:
This bulletin is for information purposes only, and does not include, or purport to include, all provisions covered in Saudi Arabian Law. This is not a legal advice and it should not be relied upon in any way. The information contained in this bulletin is based on our understanding of Saudi Arabian Law as of the date of this bulletin. This bulletin is not intended to be construed as reflecting the views and motives of the Saudi Arabian state in relation to the subject matter thereof. Unless otherwise stated, all information contained in this document shall not be reproduced, in whole or in part, without the specific written permission of K&A. K&A makes no warranty, representation or undertaking whether expressed or implied, nor does it assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information that contain in the document. It is not the intention of the publication to be used or deemed as recommendation, option or advice (including legal advice) for any action(s) that may take place in future. Any viewer seeking to take any actions or make any decisions in relevance to the content of this summary is recommended to seek a legal advice from a legal consultant.
